Vienna International Airport (VIE)-based Austrian Airlines has repaid the last segment of $67.7 million in government loans. In a statement published on December 29, 2021, the Lufthansa Group-owned airline said that following the payment of €30 million in July 2021, it will now pay another €30 million back to the Austrian state on December 31, 2021.
In its statement, the red and white national flag carrier of the Republic of Österreich said that despite the ongoing COVID-19 pandemic, it had repaid the first €60 million of a €300 million state-guaranteed loan. The €60 million that Austrian Airlines has paid this year is part of €600 million it received in loans from parent company the Lufthansa Group and the Austrian government during the summer of 2020.
COVID-19 has been the worst crisis in Austrian Airlines history
When speaking in the company statement about being able to pay back €60 million of state aid, Austrian Airlines board member Michael Trestl said:
"The corona pandemic has caused the worst crisis in our company's history. Without the support of the Austrian Federal Government and other stakeholders, the continuance of Austrian Airlines as such would not have been possible. We are proud that we have already repaid a fifth of our financial aid and that we are fulfilling our responsibilities as promised. All of this in spite of the fact that the pandemic is going on longer than we all hoped. We will proceed with this path in order to continue as the red-white-red carrier at Vienna Airport who connects Austria and the world! "
The loan will be paid in full by 2026
In June 2020, following a devastating start to the year, Austrian Airlines received a coronavirus aid package of €600 million. Of this money, €150 million was an equity contribution from the airline's parent company (Lufthansa) and a further €150 million as state cover for damages.
The rest of the €600 million in loans came from banks with the backing of the Republic of Austria. The state decided to back Austrian Airlines as its existence was deemed essential to the countries economy. The remainder of the loan will be repaid in half-yearly installments and fully paid by 2026.
Stay informed: Sign up for our daily and weekly aviation news digests.
Austrian Airlines to fly to 90 destinations during Easter
In other Austrian Airlines news, the Vienna-based carrier says it plans to offer a variety of spring sun destinations for people fed up with the freezing winter temperatures. Starting Easter week in mid-April, Austrian Airlines will be flying to around 90 destinations. Of these destinations, 16 are warm-weather locations in Greece, Italy, Spain, and the Canary Islands. Along with the spring sun destinations in Europe, Austrian Airlines says it will offer long-haul flights during Easter week to tropical beach destinations in the Maldives, Mauritius, and Mexico.
When speaking about Austrian Airlines plans for next summer, Austrian Airlines Chief Sales Officer Michael Trestl said:
"The focus is clearly on tourist destinations. With 110 destinations, 35 of them warm-water destinations in Greece, Spain, or Italy, and up to 1,300 weekly flights in peak summer 2022, we will not only significantly expand our flight program compared to 2021 but also provide an attractive holiday offer for our passengers."
What do you think about Austrian Airlines having already paid back a fifth of the money it borrowed to keep in business during the pandemic? Please tell us your thoughts in the comments.